Binhai Investment Co (2886) AI Stock Analysis

• Market Cap: HK$1.45B
• Dividend Yield: 7.24%
• Average Volume (3M): 339.60K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.45
• Revenue Growth: -3.26%
• EPS Growth: -22.44%
• Country: HK
• Employees: 1,746
• Sector: Services
• Sector Strength: N/A
• Industry: Regulated Gas
• EPS (TTM): 0.15
• Shares Outstanding: 1,383,255,100
• 10 Day Avg. Volume: 339,080
• 30 Day Avg. Volume: 339,600
• PEG Ratio: -0.27
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Neutral
• Price Target: HK$1.00 ▼(-15.25%Downside)

The overall stock score reflects a stable financial performance despite challenges in revenue growth and margin pressures. The strong valuation with a low P/E ratio and high dividend yield significantly boosts the attractiveness of the stock. Technical indicators suggest a neutral to slightly positive trend, with potential for upward movement given the oversold conditions.

Binhai Investment Co Business Overview & Revenue Model

Company Description

Binhai Investment Company Limited, an investment holding company, engages in the construction of gas pipeline networks, provision of connection services, and sale of liquefied petroleum gas (LPG) and piped natural gas in Hong Kong. The company operates through Sales of Piped Natural Gas, Construction and Gas Pipeline Installation Service, Gas Passing through Service, and Sales of Bottled Natural Gas segments. It also sells piped and bottled natural gas through its pipeline networks to residential and industrial users. In addition, the company constructs gas pipelines, as well as offers construction and gas pipeline installation services to industrial and commercial customers, property developers, and property management companies. As of December 31, 2021, it had a gas pipeline network of approximately 3,574 kilometers. The company also engages in property development business. The company was founded in 1994 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Binhai Investment Co makes money through several key revenue streams. The primary source of revenue is the distribution and sale of natural gas to different customer segments, including residential, industrial, and commercial users. The company earns income from the operation of its gas pipeline infrastructure, charging fees for the transportation and delivery of natural gas through its network. Additionally, Binhai Investment Co may engage in partnerships and collaborations with other energy companies and local governments to expand its service area and customer base, further enhancing its revenue potential. The company's strategic investments in the development of urban gas networks and related infrastructure projects are also crucial factors contributing to its earnings.

Binhai Investment Co Financial Statement Overview

Summary

Binhai Investment Co shows stable financial performance with consistent profitability, although there are pressures on revenue and margins. High leverage poses some risk, but the company maintains a solid equity base. Cash flow generation is strong, though slightly declining. Overall, the company is well-positioned but faces challenges in revenue growth and margin pressures.

Income Statement

Revenue growth has been inconsistent, with a decline of 3.26% in 2024 compared to 2023. Gross profit margin decreased from 11.69% to 9.18%, and net profit margin decreased from 4.01% to 3.22%. EBIT and EBITDA margins also experienced a decline. These metrics indicate some pressure on profitability, although the company remains consistently profitable.

Balance Sheet

The debt-to-equity ratio remained high at 1.50 in 2024, indicating significant leverage. Return on equity decreased slightly to 8.99%, reflecting reduced profitability. The equity ratio remained stable at 28.66%, suggesting adequate equity financing relative to assets.

Cash Flow

Free cash flow declined by 13.62% from 2023 to 2024, reflecting reduced cash generation. Operating cash flow to net income ratio improved to 2.98, indicating strong cash generation relative to profit. Free cash flow to net income ratio remained stable at 1.07, showing effective cash conversion from profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.20B	6.41B	6.10B	4.84B	3.65B
Gross Profit	569.48M	748.98M	727.32M	855.44M	603.41M
EBITDA	612.73M	728.45M	699.62M	781.95M	709.57M
Net Income	199.78M	256.61M	325.83M	399.66M	354.90M
Balance Sheet
Total Assets	7.75B	8.59B	8.57B	8.18B	7.09B
Cash, Cash Equivalents and Short-Term Investments	385.00M	935.40M	845.25M	742.18M	589.77M
Total Debt	3.34B	3.92B	3.93B	3.15B	2.38B
Total Liabilities	5.45B	6.27B	6.28B	5.86B	5.10B
Stockholders Equity	2.22B	2.23B	2.22B	2.25B	1.94B
Cash Flow
Free Cash Flow	213.21M	246.87M	-285.59M	-224.78M	-97.08M
Operating Cash Flow	594.99M	832.38M	350.25M	486.15M	772.30M
Investing Cash Flow	-213.40M	-586.86M	-802.42M	-613.39M	-972.35M
Financing Cash Flow	-780.61M	-252.55M	617.13M	444.82M	-113.41M

Binhai Investment Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2886, the sentiment is Positive. The current price of 1.18 is above the 20-day moving average (MA) of 1.05, above the 50-day MA of 1.04, and above the 200-day MA of 1.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2886.

Binhai Investment Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2886	70 Neutral	HK$1.45B	7.20	8.97%	7.24%	-3.26%	-22.44%
Sector *	55 Neutral	$1.83B	-5.87	7.68%	2.82%	10.18%	-64.59%
CGHOF	―	$5.53B	12.19	6.04%	4.08%	―	―
CRGGF	―	$5.85B	12.16	9.94%	6.35%	―	―
TGASF	―	$1.81B	8.63	6.93%	36.54%	―	―
9908	74 Outperform	HK$1.10B	5.41	17.44%	6.77%	13.91%	-23.60%
1600	60 Neutral	HK$3.22B	9.74	5.13%	4.84%	-1.30%	-38.13%

Binhai Investment Co Corporate Events

Binhai Investment Announces Redemption of Preference Shares

Binhai Investment Company Limited has announced the redemption of 480,650 redeemable preference shares held by TEDA Hong Kong Property Company Limited at a par value of HK$50 each, amounting to HK$24,032,500. This decision follows the fulfillment of specific conditions outlined in the company’s Bye-laws and is not expected to adversely impact the company’s financial position.

Binhai Investment Announces Board Changes

Binhai Investment Company Limited, a firm incorporated in Bermuda, announced a change in its board of directors. Mr. Yu Ke Xiang has resigned as a non-executive director due to a change in job duties, and Mr. Xia Bin Hui has been appointed to the position effective June 19, 2025. Mr. Xia brings extensive experience in corporate operation management and special assets investment, having held significant roles in various financial and asset management companies. His appointment is expected to strengthen the company’s strategic direction and operational management.

Binhai Investment Announces Board and Committee Structure

Binhai Investment Company Limited has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The company has also established four key committees: Audit, Remuneration, Nomination, and Risk, each with designated chairpersons and members. This structured governance approach is likely to enhance the company’s operational oversight and strategic decision-making, potentially strengthening its position within its industry.

Binhai Investment’s Resolution Approved at Special General Meeting

Binhai Investment Company Limited announced that the ordinary resolution proposed at their Special General Meeting (SGM) on May 9, 2025, was successfully passed by independent shareholders. The resolution involved approving the Construction Works Agreement, the Transactions, and the Annual Caps. With a total of 466,393,327 votes in favor and none against, the resolution was adopted, allowing the company to proceed with the necessary actions to implement the agreement and transactions. This approval signifies a positive step for Binhai Investment in executing its strategic plans, potentially enhancing its operational capabilities and market position.

Binhai Investment Co. AGM Resolutions Approved

Binhai Investment Co. announced that all resolutions proposed at their Annual General Meeting on May 9, 2025, were approved by shareholders. The resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend to be paid on June 10, 2025, and the re-election of several directors. The company also re-appointed Deloitte Touche Tohmatsu as auditor for the upcoming year. These approvals reflect strong shareholder support and are expected to positively impact the company’s governance and financial management.